Key takeaways:
- The U.S. Supreme Court recently narrowed the circumstances under which a court will defer to an agency's interpretation of its own regulation.
- According to one justice, the new ruling "enfeebled" and "zombified" the doctrine granting agencies deference.
- Although the effect of these new limitations remains to be seen, they should provide new ways to encourage banking agencies to engage in more open, transparent and rigorous consideration of interpretive questions.
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